What Britain’s new PM means for the pharma sector
Tory MP Theresa May has been confirmed as Britain’s next prime minister, so what does this mean for the pharmaceutical sector?
Speaking at a press conference during the official launch of her bid for leadership this week, (a bid which is now obsolete due to her main rival Andrea Leadsome withdrawing from the race), Britain’s next prime minister Theresa May threw the pharma sector under the spotlight of her manifesto.
She reflected on the government’s role during Pfizer’s planned takeover of AstraZeneca, saying a lack of ‘proper industrial strategy’ opened the industry up to vulnerabilities and overseas acquisitions.
“It is hard to think of an industry of greater strategic importance to Britain than its pharmaceutical industry, and AstraZeneca is one of the jewels in its crown,” May said.
“Yet two years ago the Government almost allowed AstraZeneca to be sold to Pfizer, the US company with a track record of asset stripping and whose self-confessed attraction to the deal was to avoid tax.
“A proper industrial strategy wouldn’t automatically stop the sale of British firms to foreign ones, but it should be capable of stepping in to defend a sector that is as important as pharmaceuticals is to Britain.”
May also lambasted terms like “stakeholder societies” (a favourite of Tony Blair’s New Labour movement in the nineties) saying that now is the time for “doing something radical” in big business.
“If we are going to have an economy that works for everyone, we are going to need to give people more control of their lives.
“And that means cutting out all the political platitudes about “stakeholder societies” – and doing something radical” May said.
“Because as we saw when Cadbury’s – that great Birmingham company – was bought by Kraft, or when AstraZeneca was almost sold to Pfizer, transient shareholders – who are mostly companies investing other people’s money – are not the only people with an interest when firms are sold or close.
“Workers have a stake, local communities have a stake, and often the whole country has a stake.”
May added that she would work to see employees serve on boards in big business:
“So if I’m Prime Minister, we’re going to change that system – and we’re going to have not just consumers represented on company boards, but employees as well.”
However, Theresa May’s appointment as prime minister will concern some in the sector, who fear that her policies on migration will hinder access to the life science talent pool.
Since the result of the UK’s referendum on its membership of the European Union, uncertainty and speculation have been rife over the issue of freedom of movement.
May said in the wake of the Brexit result that reducing net migration to tens of thousands is “where we want to aim for”.
But many in the life sciences sector have expressed concern over putting up any barriers that could dissuade academics from joining the UK’s research sector.
The BSI South Wales regional Immunology group tweeted “Research needs free movement of people and ideas” with an image of its members holding the flags of their country of origin.
Similar photos have been shared widely on social media since the Brexit result, many from scientific groups and healthcare providers.
Peter Simpson, a director of The N8 Research Partnership, a collaboration of eight research Universities in the North of England, said: “Pan-European research collaboration is one of the foundation stones of academic research in this country.
“There’s a worry we will now see a haemorrhaging of talent, with non-UK researchers steadily moving away.”
Theresa May is expected to take on the role of prime minister of the United Kingdom as current PM David Cameron steps down.